As we eagerly await the arrival of summer here at ddn headquarters in Cleveland, Ohio, we
have put our feature series on drug repurposing to bed, and are about to embark
on a multi-part series on trends in stem cell research. Our landmark series
last summer proved very popular, and the topic is just as hot this year as it
was in 2011. News about discoveries in this arena, as well as continued legal
and regulatory scrutiny over the use of human embryonic stem cells (hESCs),
still dominates many headlines.

Specifically, the university was required to submit data
showing the number of human embryos and hESC lines received in the current
fiscal year; the number of embryos used for research and the number of embryos
held in storage; the number of stem-cell lines created; and the number of
research projects currently underway.

But U-M chose to submit the requested information in a
different form. Vice President for Government Relations Cynthia H. Wilbanks sent
officials a cover letter summarizing the school's stem cell research efforts
and attached a folder containing a large number of press releases, news stories
and journal articles that "detailed the depth and breadth and scope of the stem
cell research that is going on at the university," says Rick Fitzgerald, a
spokesman from the university's office of public affairs.

"Our position is that it is just not possible to boil this
very important work into a series of data points," Fitzgerald tells ddn. "We reiterated that we feel
strongly that the information we provided offered the kind of rich context for
the research we're doing, which we believe is really important to understanding
this work."

Lawmakers were miffed at the university's submission. Last
month, at an annual meeting of the subcommittee and the leaders of Michigan's
15 state universities, Rep. Kevin Cotter, R-Mt. Pleasant, accused U-M of
"thumbing its nose at the legislature."

Cotter, who did not respond to my
interview request, said the data required of U-M could have been provided on
one sheet of paper.

U-M President Mary Sue Coleman responded that she thought
the university responded appropriately to the reporting requirements, and she
and the legislators "would have to disagree" on the issue.

Michigan's public universities are already facing a severe
budget crisis. Currently, the state budget allots $1.4 billion to higher
education, a 3 percent increase over the 2011-2012 budget.

U-M, one of the nation's top-ranked public schools, has long
been a leader in stem cell research using hESCs, adult stem cells and induced
pluripotent (iPS) cells. Notably, U-M researchers were the first to identify
stem cells in solid tumors, finding them in breast cancer in 2003. The school
bolstered its hESC program in 2008 after Michigan voters approved Proposal 2, a
state constitutional amendment that eased restrictions on the types of hESC
research allowed in Michigan.

Legislators have until the end of the month to make their
final budget decisions.

"Researchers are very concerned about the political climate
in Michigan," says Fitzgerald. "There is a lot of work to be done with regard
to higher education appropriations for the coming year, and a lot of
differences to be resolved in our state budget. This is a complicated issue for
our state, and one we hope will be resolved by the time the legislature adopts
a budget."

But Jim Eliason, executive director of the Great Lakes Stem
Cell Innovation Center and an outspoken critic of this current situation, isn't
quite as diplomatic.

"They have put something into the higher education budget
requiring some kind of nonsensical attempt at transparency—yet they are about
as transparent as …" he trails off.

The impasse between lawmakers and universities "does harm to
the entire biotech community in Michigan," Eliason adds. "We have no trouble
finding quality staff. A lot of people want to work here because of the quality
of our universities. But all of this is a strong indicator that our politicians
and state are anti-science. If you were a biotech company, would you really
want to move to a state that is anti-science? This is like pouring cold water
on recruiting efforts or start-up companies."

As we went to press, Michigan Gov. Rick Snyder came out in
favor of the university, arguing that the reporting requirements included in
last year's state budget are "unenforceable and unconstitutional if sought to
be enforced." The governor's legal counsel wrote a letter to lawmakers stating
as much.

"It's encouraging that the governor is being consistent,"
Fitzgerald says. "We continue to work with the legislators in the
appropriations process. We have a lot of time to address this and other
issues."

Here's hoping that this situation can be resolved in a
manner that is in the best interests of the universities and Michigan
taxpayers.